No QE3...bad summer ahead for the metals

There were surprisingly quite a few traders/analysts looking for some form of QE3 today. Those moderate hopes were all smashed with the decision to merely extend QE-twist. That sort of bond yield curve manipulation will do nothing to raise the equity/commodity markets.

The metals are likely going to have some rough weeks ahead this summer


GLD, weekly

SLV, weekly

Summary

With the FOMC decision out of the way, thinks are much simpler. The current down trend does indeed look set to continue. Targets of $1300 and $22 look very much within range within 2-3 months.

The Gold bugs..are not going to be pleased by early August.